Silicon Valley Bank Collapse

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The technology sector faces another challenge as Silicon Valley Bank Collapse due to a bank run on March 10, 2023, becoming the second-largest bank failure in US history and the largest since the 2007-2008 financial crisis. It was one of three bank failures in the United States in March 2023.

Mass layoffs in the troubled tech sector made headlines in late 2022 and early 2023. This is yet another setback for the technology industry, and it is the largest bank failure since Washington Mutual in 2007- 2008.

The US government intervened to protect customer deposits. HSBC intends to buy Silicon Valley Bank’s UK operations and The FDIC will acquire SVB’s commercial banking business.

Silicon Valley Bank Collapse

What is Silicon Valley Bank? How big is SVB?

SVB was a state-chartered commercial bank founded in 1983 and headquartered in Santa Clara, California now administered in receivership by the Federal Deposit Insurance Corporation (FDIC) and was the 16th largest U.S. bank before its collapse. They specialized in financing and banking for venture capital-backed startup companies, primarily technology companies.

It had branches in California and Massachusetts and was the largest bank by deposits in Silicon Valley. The bank was part of SVB Financial Group, a publicly traded bank holding company with offices in 13 other states and more than a dozen international jurisdictions.

At the end of 2022, the Silicon Valley-based SVB had assets worth $209 billion, according to the Federal Deposit Insurance Corporation (FDIC). Over half of all venture-backed tech businesses picked SVB, a prestigious banking institution that catered to the IT sector.

What happened with SVB?

Since the pandemic started, Silicon Valley Bank had been purchasing a lot of “safe” assets including U.S. Treasury bonds and mortgage-backed securities. Nevertheless, their fixed interest payments don’t keep up with growing rates when interest rates increase quickly like they did last year. As of the end of last year, the chief risk officer of SVB step down in April 2022, but a replacement wasn’t announced until January 2023 during a time when interest rates were rising. The bank had more than $17 billion in potential losses on those assets, which were no longer worth what the bank paid for them. The bank then experienced a $42 billion tidal wave of deposit withdrawal demands last week. Regulators intervened to liquidate the bank because it was unable to raise the money required to offset the outflows.

How will this affect the financial industry?

One of the most immediate consequences of SVB’s collapse is the disruption of financial services provided to its clients. The collapse of Silicon Valley Bank (SVB) has had a significant impact not only on the United States but also on businesses and countries all over the world. SVB, as one of the world’s largest and most successful banks, has played a critical role in providing financial services to many of the most innovative and high-growth companies in the technology sector.

SVB provided essential financial services such as lending, cash management, and investment banking to many of the world’s leading technology companies. Companies are now having difficulty finding a replacement who can provide comparable services, especially in the short term.

The wider IT industry is significantly impacted by SVB’s collapse. Several of the most cutting-edge and fast-growing businesses in the industry rely heavily on bank financing. After the bank failed, it has become considerably more difficult for these businesses to obtain the finance they require to keep developing and expanding.

Why was SVB important to tech companies?

The majority of the top technological companies in the world have their headquarters outside of the US, and these businesses relied on SVB for crucial financial services. These businesses now face more significant difficulties in obtaining finance and accessing financial services. Because SVB backed new businesses that other banks wouldn’t accept owing to higher risks, they were a favored bank for the technology sector.

The risks associated with its concentration in the technology sector, the regulatory environment, the competitive landscape, and external events must not be overlooked. Businesses and governments around the world should closely monitor the situation and plan for how to overcome this collapse.

Silicon Valley Bank Collapse

Does this relate to cryptocurrency in any way?

Many emerging cryptocurrency businesses found their financial feet with the aid of SVB. Also, several of the greatest names on the web3 used it as their banking partner.

The SVB disaster wasn’t directly related to the current crypto meltdown, but it might make that crisis worse as well. The stablecoin USDC is run by the cryptocurrency company Circle and is backed by cash reserves, $3.3 billion of which are deposited at Silicon Valley Bank. Its stablecoin was supposed to always be worth $1, but after SVB failed, it lost its peg and fell as low as 87 cents. Conversions between USDC and dollars were halted by Coinbase.

What exactly is FDIC insurance?

The Federal Deposit Insurance Corporation, or FDIC, is a separate entity under the control of the US government. Even if an insured bank fails, the FDIC guards depositors of American-based insured banks against losing their money.

FDIC insurance coverage is available to anyone or any entity in an insured bank. To have their deposits insured by the FDIC, a person does not need to be a citizen or resident of the United States.

The entire confidence and credit of the US government support FDIC insurance. No depositor has ever lost a penny of FDIC-insured deposits since the agency’s founding in 1934.

Will SVB customers be reimbursed for their $250,000?

After the collapse of Silicon Valley Bank, the U.S. government took exceptional action to avoid a banking crisis, ensuring all depositors at the failed firm could promptly access all of their money even as another significant bank was shut down.

Simple terms of FDIC:

  • FDIC insurance means that any money you have in an SVB bank account up to $250,000 will be fully covered. You will get all that money back.
  • For anything over $250,000 in your SVB bank account, Moody’s estimates you will get 80 cents to 90 cents for each dollar deposited.

 For SVB Bank, the government agreed to make an exception and reimburse all of their depositors. Two sources of funding are used to support the Deposit Insurance Fund: premiums levied against insured banks and income accrued on money deposited in US government securities. The fund had a balance of $128.2 billion by the end of 2022, according to the FDIC’s website. For comparison, SVB had deposits totaling more than $175 billion at the end of last year.

Conclusion

  • Silicon Valley Bank Collapse because of a lack of diversification.
  • The most important reason for collapse was the increase in interest rates after the COVID pandemic.
  • SVB is a prestigious banking institution that caters to the IT sector.
  • SVB disaster wasn’t directly related to the current crypto.
  • The government agreed to reimburse all of the SVB depositors.

Bill Gates praised India’s Digital Payment System

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The founder of Microsoft Bill Gates praised India’s Digital Payment System and said that Covid-19 across the world had demonstrated the value of digital payment systems for facilitating emergency relief payments.

Bill Gates said that India has a “great” digital network, reliable and low-cost connectivity, and will be the cheapest 5G market. During India’s G20 presidency, a session on ‘Building resilient and inclusive economies- the Promise of Digital Public Infrastructure’ was held in New Delhi, where the Microsoft founder spoke about India’s digital identity Aadhaar, payment infrastructure, and rapid progress in bringing more people into the formal banking system.

Gates thinks that other countries have to replicate this model if they want to improve their public infrastructure. India and Singapore last week linked digital payment systems and that “is a very worthwhile goal”.

Bill Gates Praises Indias Digital Payment System.Digital Payment Market

With a projected market opportunity of US$ 1.3 trillion by 2025 and over 42,000 active fintech firms, India is rapidly emerging as the global hub for the fintech industry. Over the eight years from 2014 to 2022, funding for over 550 start-ups surpassed nearly US$ 22 billion. Furthermore, with a fintech adoption rate of 87%, India has emerged as a prime location for the digital payment revolution, far exceeding the global average of 64%. The JAM trinity (Jan Dhan-Aadhaar-Mobile), digital public goods infrastructure, and the India Stack are blessings for Indian start-ups looking to use fintech to cross-sell products, making it an important revenue source for business owners. Historically, most economies have faced significant barriers to financial inclusion due to societal attitudes, legal frameworks, and prohibitively high transaction costs.

Digital technologies offer a powerful means of removing these barriers and increasing access to banking and the financial system. After Covid-19 Consumer preferences and behaviors were shifted in favor of digitally assisted modes of Payment. The “India Stack,” a unified software platform, is the world’s first national digital infrastructure, providing a low-cost digital push and leapfrogging at least two financial technology generations.

A “stack” refers to all of the technologies needed to run an application, such as programming languages, architecture, libraries or lexicons, servers, user interfaces and experiences, software, and developer tools such as APIs that connect databases and software. In other words, India Stack is a technological foundation that combines a set of Application Programming interfaces (APIs) that serve as a technical link that allows two software programmers to communicate with one another.

Financial services have been at the forefront of this innovation and transformation in India, with exponential growth in digital service adoption. It enables governments, businesses, start-ups, and developers to use this one-of-a-kind digital infrastructure to catalyze the evolution of the digital ecosystem.

In 2011, only 35% of Indian adults had a bank account. However, due to the government’s evolving impetus, the number had surpassed more than 80% by 2017, bringing the total population to approximately 1.4 billion in the digital age. Prime Minister Mr. Narendra Modi, launched a website for global solutions, ” India stack global,” in honor of Digital India Day on July 4, 2022. The India Stack Knowledge Exchange (ISKE) Program 2022 was presented to the global community to showcase India Stack solutions and goods, as well as to invite other nations to adopt and customize India Stack solutions for their use, thereby contributing to the repository of Global Digital Public Goods.

The India Stack’s success is already having an international impact. Singapore and India signed a high-level agreement in 2018 to “internationalize” the India Stack (UPI). While Aadhaar is popular in the Philippines, Morocco, Vietnam, Myanmar, and other countries.

How Digital Payment System helps to improve the Economy

The advantages of digital payments extend far beyond the ease of use that many people in developed economies associate with the technology. Digital payments in developing economies provide immediate benefits to both senders and receivers, as well as the ability to increase citizen access to affordable financial tools. Sending, paying, and receiving money is less expensive and more secure with digital financial services. Digital payments enable people to move away from the constraints of a cash-only economy and into the financial mainstream. The use of digital payments for remittances rather than cash benefits poor people in emerging markets while also contributing to financial development. This could also help alleviate concerns about remittance transparency and traceability. The reason Bill Gates Praised India’s Digital Payment System

Bill Gates Praised India's Digital Payment System

Advantages of Digital Payments

Faster, easier, and more convenient

One of the most significant advantages of cashless payments is that they speed up the payment process and remove the need to fill out lengthy information. When you are on travel there is no need to the ATM or carry cards in your wallet. Many services, such as digital wallets and UPI and banking services are available 24 by 7 and 365 days a year, including bank holidays.

Economical and low transaction fees

Many payment apps and mobile wallets do not charge any service or processing fees for the services they provide. The UPI interface is one such example, where customers can use services for free. Costs are being reduced by various digital payment systems.

Waivers, discounts, and cashback

Customers who use digital payment apps and mobile wallets can earn a variety of rewards, discounts, and Waivers. Many digital payment banks offer appealing cash-back offers, which act as a motivator to go cashless.

Easy to maintain records

Another advantage of going digital is the ability to keep all transaction records. Customers can track every transaction, no matter how small the transaction amount.

Bill payment with a single application

Many digital wallets and payment apps have evolved into an easy way to pay utility bills. All utility bills, whether mobile phone, internet, electricity, or gas can be easily paid using a single application.

The control of black money

Digital transactions help the government keep track of things and, in the long run, it helps to control the circulation of counterfeit notes and black money. In addition, the cost of minting currency may be reduced, which may benefit the economy.

Conclusion

Digital payments are gradually gaining traction in India, and numerous apps in this sector are being developed. It has evolved into a simple and secure payment method.

Earthquake in Turkey

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On 6 February 2023, at 4:17 as TRT, a massive magnitude of 7.8 Earthquake in Turkey near the northern border of Syria. After that, the second earthquake occurred was a magnitude of 7.5. That earthquake occurred approximately nine hours later after the first. The earthquake was located around 59 miles (95 kilometers) to the southwest.

By 24th February 2023, over 6000 aftershocks were recorded by Turkey’s Disaster and Emergency Management Authority (AFAD). The first aftershock was a massive magnitude of 6.7 occurred about 11 minutes after the main earthquake, 25 more aftershocks magnitude of 4 or greater were recorded by Turkey’s Disaster and Emergency Management Authority (AFAD). The first earthquake of a Magnitude of 7.8 is massive since 1939. It’s created about 100km of fault line, causing severe damage in the region. Turkish President Erdogan declared a three months state of emergency in 10 of the country’s provinces.

Earthquake in Turkey

Credit BBC

What is Earthquake?

The earth’s crust is composed of a solid core, molten magma, and tectonic plates. Due to molten lava pressure, tectonic plates are constantly moving. This constant movement leads to either the plates sliding against each other. When the plates are moving the potential energy gets released this output is called Earthquake.

In geological terminology, the surface where they slip is called the fault or fault plane. The point on the earth’s surface where the earthquake starts is called the hypocentre, and the point directly above it on the surface of the earth is called the epicenter.

The concept of plate tectonics was formulated in the 1960s. Tectonic plates found in the ocean are called oceanic plates while those found in continents are continental plates.

Damage and casualties in Turkey

According to Wikipedia, there were near 47,000 death and 108,068 injured across Turkey’s 10 most affected provinces. At least 13.5 million people and 4 million buildings have been affected. About 345,000 apartments were devastated. Thousands were trapped under rubble when buildings collapsed. Many people remained missing in collapsed buildings. Some of those trapped under rubble live-streamed their pleas for help on social media.

By 24 February 2023, the Ministry of Environment, Urbanization, and Climate Change conducted damage inspections for 1.25 million buildings; revealing 164,000 buildings were either destroyed or severely damaged. A further 150,000 commercial infrastructures were at least moderately damaged.

Damage and casualties in Syria

Nearly 7000 people were killed, and over 14,000 were injured in Syria. The Syrian Ministry of Health has recorded over 2,000 earthquake-related deaths and 2,950 injuries in government-held areas, most of which were in the provinces of Aleppo and Latakia. In rebel-held areas, nearly 4,500 people have died and 2,200 others have been injured. It was estimated that up to 5.37 million people across Syria might have been made homeless, while 10.9 million people, nearly half of the country’s population, were affected.

Impacts on Neighbouring Countries

The neighboring countries of Turkey and Syria were heavily affected by this massive earthquake. In Lebanon, residents were awakened from their sleep. Buildings in the country shook for up to 40 seconds. In Beirut, residents fled their homes and stayed in the streets or drove in their vehicles to flee from buildings. The earthquake damaged nearly 16,000 buildings across the country.

In Israel, a building was evacuated after cracks were observed in a pillar, and Champion Motors Tower in Bnei Brak was damaged by the second earthquake. Some windows in Nicosia, Cyprus, cracked, and a house wall collapsed, damaging two nearby vehicles.

Armenia, Egypt, Palestine, Georgia, Greece, Iraq, Jordan, Israel, and Russia all felt the tremors.

Losses in Turkey and Syria

According to a World Bank article, direct damages to residential buildings are $18 billion, non-residential buildings are $9.7 billion (e.g., health facilities, schools, government buildings, and private sector buildings), and infrastructure is $6.4 billion (e.g., roads, power, water supply).

Conclusion

The first earthquake of a Magnitude of 7.8 massive since 1939 in Turkey.

Over 6000 aftershocks were recorded by Turkey’s Disaster and Emergency Management Authority (AFAD).

Nearly 54,000 died and 122,000 were injured in Turkey and Syria.

Around $80 to $100 billion of heavy economic and infrastructural losses in Turkey and Syria.

The earthquake is not predictable.

Biden Surprise visit to Ukraine

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On February 20, 2023, the President of the United, Joe Biden, made a surprise visit to Ukraine, for the first time since the conflict started. For security reasons, the president is traveling on the train from Poland to Ukraine. His travel plans had not been made public before his arrival, and only two journalists are allowed with the president. The total visit duration is 24 hours, it’s the first time since 1868 that when U.S. President has traveled to an active conflict zone not controlled by the American military. The Pentagon and the Secret Service opposed the visit. Biden announced another $500 million in military assistance to Ukraine. the package would include more military equipment, such as artillery ammunition, more javelins, and Howitzers and new sanctions will impose on Russia next week. Biden’s Surprise visit to Ukraine helps Ukraine to boost morale and a clear message to Russia that America is with Ukraine. The White House published a statement about Ukraine’s visit on its website

Biden Surprise visit to Ukraine

Background of this Visit

Since Russia invaded Ukraine on February 24, 2022, United State is the largest supporter of Ukraine throughout the year and committing over US $27 billion in security assistance since the invasion began.

United State Secret Service and Pentagon opposed Biden’s visit to Ukraine. The meeting is possible near the Polish border but then Biden decides to visit the actual conflict zone and surprise everyone.

Biden Surprise visit to Ukraine

Visit with high Secrecy

This is the high secret visit Biden, Reportedly Biden had dinner with his wife on Saturday in Washington, and later at 4:15 A.M. ET on February 19, 2023, Biden departed the White House and traveled to Joint Base Andrews for a flight to Rzeszow, Poland, Biden travel on Boeing C-32A with a refueling stop at Ramstein Air Base in Germany to Rzeszow and then transfer by car to Przemysl, Biden later took a 10 hours train from the Polish border to reach the Ukrainian capital Kyiv, the same method was used by many world leaders visited Ukraine since the beginning of the invasion. The Russian government was informed prior to Biden’s visit. Biden’s visit to the capital is around five hours, Biden was transported in a black limousine rather than the usual armored presidential car. During the visit, Biden met with the president of Ukraine Volodymyr Zelenskyy and the First Lady of Ukraine Olena Zelenska. reporters aboard were not allowed to carry their devices with them.

Joint press conference with Zelenskyy

Biden had a joint press conference with Zelenskyy at the Ukrainian Presidential palace. Biden’s statement that The Americans stand with you, and the world stands with you.

Biden Surprise visit to Ukraine

Military aid announcement

Biden announced an additional military aid package for Ukraine, worth US$500 million and including ammunition for the HIMARS rocket launcher system, artillery ammunition, more javelins, and Howitzers.

Concerns over China’s support for Russia

After Russia invaded Ukraine, new questions are rising over China’s potential willingness to offer military aid to Russia in the increasingly drawn-out conflict.

U.S. Secretary of State Antony Blinken said China is considering providing arms and ammunition to Russia, this is a “serious problem.”

China has refused to criticize Russia for its actions. The question now is whether China is willing to convert that rhetorical backing into material support.

Biden Surprise visit to Ukraine

Reaction of World

Former Russian President Dmitry Medvedev dismissed the visit as an effort to increase the “huge quantities” of weapons and money already sent to Ukraine.

Many of Russia’s military experts reacted with anger or embarrassment.

Journalist Sergey Mardan wrote that it was a “demonstrative humiliation of Russia.”

Analysts as well as Polish President Andrzej Duda saw the trip as an important morale boost for the Ukrainian soldiers. After news of the visit broke, Japanese Prime Minister Fumio Kishida announced $5.5 billion in new financial and humanitarian aid to Ukraine.

Conclusion

Biden’s Surprise visit to Ukraine is a clear message to Russia that America is with Ukraine.

America Helps Ukraine with military aid of US $ 500 Million.

Air India’s Biggest Ever Aviation Deal in history

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Tata Group-owned Air India has announced the biggest ever aviation deal in the history of civil aviation. Indian Carrier Air India’s record deal for 470 planes from Airbus and Boeing has happened at a time when the carrier plans to become “a world-class proposition“. The deals were announced during interactions between the Tata leadership along with Prime Minister Narendra Modi and French President Emmanuel Macron and US President Joe Biden separately. These orders beat American Airlines’ 460-plane deal in 2011. The troubled national carrier, which was acquired by Tata about two years ago, has retired most of its older aircraft and launched a five-year plan to modernize its fleet.Biggest Ever Aviation Deal

Who is Air India?

Air India is the flag carrier airline of India, headquartered in New Delhi. It was founded by J. R. D. Tata as Tata Airlines in 1932. Air India operates a fleet of Airbus and Boeing aircraft serving domestic and international destinations. Air India is the largest international carrier in India with an 18.6% market share. The airline became the 27th member of Star Alliance on 11 July 2014. Early years Air India is known as Tata Air Services later renamed Tata Airlines. After Indian Independence, 49% of the airline was acquired by the Government of India. Air India is suffered from heavy losses, finally, the Government of India approved the privatization of Air India in June 2017. On 27 January 2022, the airline was officially handed over to Tata Group.

What is Deal?

Air India will induct 210 Airbus A320/321 Neo planes, 190 Boeing 737 MAX single-aisle aircraft, 40 Airbus A350s, 20 Boeing 787s, and 10 Boeing 777-9s into its fleet. The estimated cost of Air India is a whopping $85 billion according to the list of aircraft. Air India required 840 total aircraft in the need to replace the old fleet of 113 aircraft whose poor interiors. Airbus and Boing start delivering orders in the second half of 2023 and it will take 7 to 8 years to complete. This purchase will support over one million American jobs across 44 states and France as well. This is the reason this is biggest ever aviation deal

Biggest Ever Aviation Deal

Why did Air India require so many new planes?

The Tatas acquired Air India from the government and gained control in early 2022. Carrier has already merged itself with Vistara, after which it emerged as the country’s largest airline operating on international routes and the second largest in the domestic market after Indigo. The Tata group owned 218 planes and was flying to 57 domestic and 45 international destinations in 31 countries across five continents around the world. After this deal, Air India will overtake Indigo’s fleet of 300 aircraft to emerge as the largest airline in domestic routes too. The deal is also at the heart of Air India’s five-year plan to transform itself into a world-class airline. Air India could turn Indian cities into hubs for long-haul flights, much as Turkish Airlines has done for Istanbul or Qatar Airways for Doha.

How will the deal help Air India?

The Tata group is currently looking to build a market share of 30 % in the domestic aviation space through its three entities, including Air India, Vistara, and Air Asia India. India’s domestic market is currently dominated by Indigo, which has been expanding at breakneck speed. Indigo airline currently boasts a fleet of over 300 aircraft, the highest in the country. It operates the Airbus A320 CEO and NEO, the A321 NEO, and the ATR 72-600 aircraft. Indigo has a domestic market share of 56.2 %, ferrying over 6.5 million passengers a month and operates over 1,600 daily flights, and connects 76 domestic destinations and 26 international ones. India’s domestic aviation market is currently led by low-cost carriers that control as much as 80 percent of the market. Tata’s total fleet size stands at 219, including Air India’s 113 aircraft, Air Asia India’s 28 aircraft, Vistara’s 54, and Air India Express’ 24 jets. This deal is helping tata to replace its old aircraft and increase its ferrying capacity to compete in the domestic market against Indigo Airlines. The Tata Group is eyeing to create an Air India brand umbrella that will have a single low-cost platform and a single full-service platform by the end of 2023.

Biggest Ever Aviation Deal

How will Air India become a world-class airline?

Within a short period of time, this deal is famous around the world. In particular, the leaders of the US, France, and the UK welcomed the commercial benefits of the deal for their industries. Back in India, Air India still has to slough off a poor reputation one-handed from its years of government ownership, although it hasn’t improved in the year since the Tatas bought the airline.

There are lots of incidences like last November, an inebriated man urinated on a 70-year-old fellow passenger in the business class cabin of an Air India flight. This incident shows the poor passenger handling capacity of the airline. Last so many years customers both international and domestic have complained about poorly maintained cabins, broken seats, and lack of hygiene. This incident creates poor trust issues in customers’ minds. Tata wants to fix these operational issues and expand airline Service destinations. The new fleet will provide a cleaner and rich experience to the customers like other world-class airlines provide.

Indian-American Neal Mohan to become YouTube CEO

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YouTube CEO Susan Wojcicki announced that she is stepping down from her role as CEO. After spending close to a decade as the head of the platform. 54-year-old Susan Wojcicki is a Polish-American business executive who has been the CEO of YouTube since 2014. Her net worth was estimated at around $770 million.

Followings are some main reasons for stepping down and about the Next CEO of YouTube

Neal Mohan

Who is Susan Wojcicki?

Susan Wojcicki is a Polish-American business executive, she was born on 5th July 1968 in Santa Clara County, California, currently, Susan Wojcicki is 54 years old. Susan Wojcicki was the CEO of YouTube from 2014 to 2023. Wojcicki was worked in the tech industry for nearly 25 years. Susan involving in the creation of Google in 1998. She worked as Google’s first marketing manager in 1999 and after she work as head of the company’s online advertising business and original video service. Susan observing the success of YouTube, Susan suggested that Google should buy it, the deal was done for $1.65 billion in 2006. She was appointed CEO of YouTube in 2014. She resigned as CEO in 2023.

What is the reason of step down?

Susan Wojcicki clears the reason in their blog post “Today, after nearly 25 years here, I’ve decided to step back from my role as the head of YouTube and start a new chapter focused on my family, health, and personal projects I’m passionate about,”

“This will allow me to call on my different experiences over the years to offer counsel and guidance across Google and the portfolio of Alphabet companies,” she added.

Who is Neal Mohan?

Neal Mohan

Neal Mohan is a 49-year-old Indian-American; Neal is complete his Bachelor in Electrical Engineering from Stanford University in 1996 and Master of Business Administration in General Management from Stanford University School of Business in 2005,

Neal Mohan is the chief product officer at YouTube since 2015 and will take over as the new CEO of YouTube.

Neal Mohan played a key role in advancing Google’s advertising products, including AdWords, AdSense, and DoubleClick.

Neal Mohan started his career at Accenture in 1996 after that he joined a startup called Net Gravity which was acquired by the online advertising company DoubleClick and in 2007 Google agreed to acquire DoubleClick for US $3.1 billion.

Neal Mohan has also worked with Microsoft as a manager of the corporate strategy. Neal Mohan is also on the Board of many other firms like Stitch Fix.

What is ChatGTP?

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What is ChatGTP?

ChatGTP is an artificial chatbot designed and developed by OpenAI and launched in November 2022. It’s a revolutionary technology because it’s trained to learn what humans want to ask. It is available for everyone to try out for free, even if there have been some issues because many users discovered that ChatGPT could provide incorrect answers. Within a few weeks of launch, OpenAI’s ChatGTP create a new global race in artificial intelligence. It is the most important tool of the future for search engines, with the help of chatGTP humans can get appropriate answers or results to the question that they ask. Who Built ChatGTP?

What is ChatGTP?

Who Built ChatGTP?

ChatGPT is an artificial intelligence chatbot developed by San Francisco-based AI research company OpenAI and launch in November 2022. The CEO of OpenAI is Sam Altman, who previously was president of Y Combinator. Microsoft is OpenAI’s largest investor and exclusively licenses its technologies. The tech giant invested $1 billion into the AI startup in 2019 and an additional amount of up to $10 billion in January 2023. Under the agreement, Microsoft can use OpenAI’s GPT-3 and ChatGPT, to create new or enhance existing products. It is the only company outside of OpenAI that can provide an API for these technologies.

What is the Use of ChatGTP?

The core function of a chatbot is to provide correct information that humans want to ask, ChatGPT can write and debug computer programs, and compose music, blog, fairy tales, and student essays. If there is enough information available, the ChatGTP will fulfill the commands with accurate details to the user. Otherwise, there is a possibility of providing incorrect data to the user. ChatGPT can write code, poems, songs, and even short stories like any other author.

How Was ChatGPT Trained?

ChatGPT was fine-tuned based on GPT-3.5 using supervised learning and reinforcement learning. Both approaches used human trainers to improve the model’s performance. GPT-3.5 used massive amounts of data about code and information which is available on the internet, including sources like Reddit discussions, to help ChatGPT learn dialogue and attain a human style of responding.

Limitation of ChatGTP

ChatGPT is specifically programmed not to provide negative, toxic, or harmful responses. it will avoid answering those kinds of questions. An important limitation of ChatGPT is that the quality of the output depends on the quality of the input. In other words, if the data used by the chatbot is incorrect then the output is also incorrect. Many users discovered that ChatGTP can provide an incorrect answer, including sometimes that are wildly incorrect or wrong.

Is ChatGPT free to use?

The service was launched as initially free to the public, with plans to monetize the service later. In January 2023, ChatGPT reached over 100 million users, making it the fastest-growing consumer application to date. The New York Times reported in December 2022 that it has been rumored that the next version of the AI, GPT-4, will be launched in 2023 OpenAI has also recently announced a new paid, premium version of its chatbot, called ChatGPT Plus, It is a premium service, ChatGPT Plus is the cost of $20 per month. OpenAI is also planning to release a professional ChatGTP plan at $42 per month and a free plan is available when demand is low

Will ChatGPT replace Google?

Google is reportedly declared a “code red” fearing that the AI chatbot could disrupt its search business. Google has already created an AI chatbot that is called LaMDA. The first generation was announced in 2021, In June 2022, LaMDA gained widespread attention when Google engineer Blake Lemoine made claims that the chatbot had become sentient. It doesn’t look like ChatGPT will replace Google because the technology still has a long way to go, but it’s possible to replace it in the future for search.

Conclusion

Currently, ChatGPT is free to use but in the future, the public have to pay a cost to use this technology.

Over a million users have registered to use ChatGPT within the first five days since it was opened to the public.

ChatGTP is using data available on the internet.

Technology is used for SEO and content.

Currently, ChatGTP is not replacing Google but it is possible in future